India's wholesale inflation eases to 20-month low of 8.39%

New Delhi, November 14, 2022

India's annual rate of inflation, based on the Wholesale Price Index (WPI), eased to 8.39 per cent in the month of October 2022, the lowest in 20 months, as against 10.70 per cent recorded in September 2022, provisional data released here today said.

This was also the first time that the wholesale inflation rate has dropped to single-digit levels in 18 months.

The WPI had soared to 15.88 per cent in May 2022. In October 2021, it was 13.83 per cent.

A press release from the Ministry of Commerce & Industry said the decline in the rate of inflation in October 2022 was primarily contributed by fall in the price of mineral oils, basic metals, fabricated metal products, except machinery and equipment; textiles; other non-metallic mineral products; minerals, and so on.

The month over month change in the WPI index for the month of October, 2022 stood at 0.26 % as compared to September, 2022.

The index for Primary Articles, which have a weight of 22.62% in the WPI, increased by 2.72% to 181 in October 2022 from 176.2 for September, the release said, citing the data.

Prices of Crude Petroleum & Natural Gas (17.48%) and Food Articles (2.03%) increased in October, 2022 as compared to September, 2022. Prices of Non-food Articles (-0.53%) and Minerals (-3.78%) declined in October, 2022 as compared to September, 2022, the provisional data showed.

The index for Fuel & Power (weight 13.15%) declined by 1.65% to 155.2 in October, 2022 from 157.8 for the month of September, 2022. Prices of Coal (2.60%) increased in October, 2022 as compared to September, 2022. Prices of Mineral Oils (3.09%) declined in October, 2022 as compared to September, 2022. Prices of electricity remain unchanged.

The index for Manufactured Products (weight 64.23%) declined by 0.42% to 141.9 in October, 2022 from 142.5 for the month of September, 2022.

Out of the 22 groups of manufactured products, six groups witnessed an increase in prices while 14 groups have witnessed a decrease in prices. The index of two groups remained unchanged. The increase in price is mainly contributed by printing and reproduction of recorded media; other transport equipment; rubber and plastic products; pharmaceuticals, medicinal chemical and botanical products; computer, electronic and optical products.

Some of the groups that have witnessed decrease in prices are basic metals; fabricated metal products, except machinery and equipment; textiles; other non-metallic mineral products, motor vehicles, trailers and semi-trailers in October, 2022 as compared to September, 2022.

The WPI Food Index (weight 24.38%), consisting of 'Food Articles' from Primary Articles group and 'Food Product' from Manufactured Products, group have increased from 175.2 in September, 2022 to 177.5 in October, 2022. The rate of inflation based on WPI Food Index decreased from 8.08% in September, 2022 to 6.48% in October, 2022.

The release said that, for the month of August, 2022, the final WPI and final inflation rate for 'All Commodities' (Base: 2011-12=100) stood at 153.2 and 12.48%, respectively.

NNN